Life insurance is often misunderstood as a luxury needed only by the rich. However, today, this is a necessity for every American. If your workplace does not offer you an insurance cover, it is time to thinking of one for yourself. By insuring your life, you ensure that your family is taken care of even after your demise. Here are a few scenarios and how life insurance applies to each one.
When you’re single
Single people typically do not need life insurance unless they support their parents or any other family member financially. For example, you may be paying for your sibling’s medical bills. Another reason you may need insurance when you’re single is if you have taken a loan that your family will have to pay back in the event of your demise.
When you’re married but don’t have children
The future of a person’s children is not the only reason to get life insurance. When you’re married, even if your spouse is working, your income supplements theirs and lets you live the lifestyle you enjoy. Thus, if something were to happen to you tomorrow, your spouse may not be able to continue enjoying this lifestyle only on his or her own salary. Some of the costs that you need to consider include home rent, credit card bills, utility bills, loans etc.
When you’re married and have young children
Every parent wants the best for their children and works towards ensuring that no need of their child should go unfulfilled. For this reason, when you start planning a family you also need to look at affordable life insurance policies. This ensures that even after your death, your family can meet their financial needs and your plans for your children’s future can stay on track.
When you’re a single parent
When you are the sole guardian of a child, you have a lot of responsibility on your shoulders. In such a situation, you cannot count on anyone else to take care of your child or children after your death and need to safeguard their future.
When you are no working so as to look after the children
A stay at home parent may not contribute directly to the family income but undertake a number of tasks that could otherwise add to your costs. In the event of their death, getting someone to look after the children, run the household etc. could be quite expensive. Hence, in such a situation, insuring your life can help pay for caregivers and let your family maintain their standard of living.
When you have retired
After your children have grown up and settled down and you have retired, you may think that life insurance is no longer necessary- after all everything you have will one day go to your children. However, when your children inherit your estate they could be liable to pay a heavy estate tax. If you have a well-structured life insurance policy, this could take care of any such payments so that your children do not need to liquidate their assets.